Property prices fell in June as sales rose sharply

12 July 2010 | By Samuel Dale

House prices fell last month, with Halifax’s house price index showing a 0.6% drop and the LSL/Acadametrics index showing prices decreasing by 0.5%.

LSL/Acadametrics reports a 7.7% year-on-year rise in prices, with Halifax showing a 6.3% rise.

Meanwhile, Halifax says the average house price is now £166,203, while LSL/Acadametrics says the average property price in England and Wales is £218,119.

Martin Ellis, housing economist at Halifax, says: “The June price fall continued the trend of a slowdown seen since the beginning of this year, following a moderate recovery in 2009.

“This pattern is in line with our view that prices will remain pretty much unchanged this year.”

LSL/Acadametrics also reveals a 20% jump in the number of properties sold to 63,500 in June - up from 52,975 in May.

David Brown, commercial director at LSL Property Services, says the key to a market recovery lies with first-time buyers.

But he adds: “We can’t discount further prices falls in the next few months as the market continues to stabilise.”

And Peter Williams, chairman of Acadametrics, says traditionally the number of houses sold in June is higher than in May.

But he adds: “This year sales in May were abnormally low, possibly owing to uncertainty as a consequence of the election.”

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